IRCB may have a bullish breakout

Integrated Rubber Corporation Bhd ('IRCB') broke above its downtrend line at about RM0.70 today. From the 60-min intra-day chart (Chart 1), we can see that IRCB has broke above its triangle at RM0.68 & the downtrend line that stretched back to mid-April at RM0.70-71. From the daily chart (Chart 2), we can see a breakout at RM0.67 a few days ago. The next resistance will be at RM0.80 and then at RM0.85.


Chart 1: IRCB's 60-min chart as at June 8, 2010_3.00pm (Source: Quickcharts)


Chart 2: IRCB's daily chart as at June 8, 2010_3.00pm (Source: Quickcharts)

Based on the above breakout, IRCB could be a trading BUY.

Warning: Global equity market condition is quite precarious with DJIA closing below 10000 yesterday. Further weakness in DJIA could trigger more correction in our local market.